Recent declines in the production index and weakening confidence indicators suggest that the construction sector may enter a more moderate growth path for the remainder of the year, says Erdal Eren, the head of the Turkish Contractors Association (TMB).
Eren noted that the pace of expansion in the construction industry has slowed significantly, pointing out that growth dropped from 8.6 percent in the final quarter of 2025 to 3.2 percent in the first quarter of 2026. He said this sharp deceleration indicates that the strong momentum observed in previous periods has weakened.
Eren attributed the loss of momentum primarily to tight financial conditions, high borrowing costs and a cautious stance in private-sector investments, all of which have weighed on activity in the industry.
He also underlined that reconstruction efforts in earthquake-affected regions and public infrastructure investments have continued to support the sector.
However, he stressed that this contribution has become more limited this year and has not been sufficient to offset the slowdown in private-sector-driven construction activity.
